By Dianna Brodine, vice president, editorial, The American Mold Builder
What are fellow mold builders doing right now that can be implemented in other mold shops? Take a look through these information bursts for ideas on process efficiency, new business and the bottom line.
Improving throughput
According to Laurie Harbour, president of Harbour Results, Inc., the edict from OEMs like Ford, GE Healthcare and John Deere is a 30% reduction in lead time. For mold builders looking to compete and reshore tooling, reducing waste and improving throughput are critical.
- Standardized training is key. Instead of calling individuals out for performing job functions in a way that isn’t efficient, bring the entire team together to teach them the correct process.
- Develop a sequence of events that is reviewed at the kickoff meeting so that each stage of the tool build is outlined, equipment and supplies are ready before the in-process tool reaches each station and employees know what they need to do to complete their portion of the job.
- Track material waste. Is it specific to a particular machine or work station? If so, bring together a team to review the process and make recommendations.
Drive Sales
When a tool builder is awarded a new program, the job rarely comes into the shop the next day. In fact, 12- to 18-month lead times aren’t uncommon. The sales pipeline has to stay full so the shop can maintain a consistent flow of business.
- Create an annual plan with existing customers. Are they planning to buy new molds? Kick off new programs? Undertake repair or maintenance activities?
- Follow engineers when they change jobs. What opportunities are available with the new company?
- Exhibit at tradeshows where target customers are in attendance.
- Cultivate international business (a California-based tool builder has more foreign customers than domestic at the current time).
- Send email blasts to current customers and prospects to remind them of capabilities and current capacity levels. Customers’ needs change constantly – what they didn’t need three months ago may be exactly what they need today.
Manage cash
- Small steps can allow businesses to keep more of the cash they’re earning.
- Watch for “scope creeps” by being aware in real time (not after project completion) when the original scope of business changes. Don’t be afraid to go back to the customer to propose new terms based on the increased workload.
- Audit existing banking relationships. Ask for better interest rates, and move the book of business if the request isn’t honored.
- Do a credit check on customers to make sure they are able to meet financial obligations.
- Call customers with a reminder a week or two before a payment due date.
